From Pine View Farm

Mark to Market, Three Card Monte Dept. 0

I love this phrasing (emphasis added):

For weeks, investors have been expecting regulators to change accounting rules that would allow banks to recoup some losses already taken on illiquid mortgage assets, making Thursday’s official decision by the Financial Accounting Standards Board almost a nonevent, analysts said.

There ain’t no “recouping” about it. There is nothing to recoup.

The banks don’t want to admit that they screwed the pooch a long time ago.

What they want to do is say,

“Hey, you see that rusted out 1973 Chevy Impala over there–you know, the one with the blown engine and the broke rear axle what I wouldn’t of bought in the first place if I hadn’t a been drunk on pay for non-performance?

“Well, from now on, it’s a slightly used 2003 Bentley, and that’s how I’ve going to price it. That way, I must not be as stupid as I look. Take that, suckers.”


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